Export tax clouds Goa mining

Panaji is witnessing rising concern among Goa’s mining community as the possibility of extending export duties to low-grade iron ore casts a shadow over the state’s mineral industry. The Goa Mineral Ore Exporters’ Association (GMOEA), which has represented mining interests for over 60 years, has urged the central government to reconsider any such move, warning that it could disrupt operations, livelihoods, and local economic activity.

Goa’s iron ore is predominantly low-grade, making it largely unsuitable for domestic steelmaking, which relies on higher-grade ore from eastern India or Bellary. Experts point out that forcing Goan miners to pay export duties would have little national benefit while imposing severe financial stress locally. The additional cost of logistics and the need for imported coking coal already make Goan ore more expensive for steel production, even for exports.

The GMOEA highlights that of the 12 auctioned mining blocks in Goa, only three are operational, with more expected soon. Investors have made significant commitments toward compliance, employment, and logistics. Imposing export duties now could discourage participation in upcoming auctions and threaten the fragile recovery of the sector, the association said.

Low domestic demand for Goan iron ore has also led to rising stockpiles,from 126 million tonnes in 2020-21 to an estimated 180 million tonnes in 2024-25,creating both logistical and environmental challenges. An export duty, GMOEA argues, could exacerbate this problem, leading to wastage and affecting project viability, state revenues, and future policy planning.

The association appreciates the government’s formation of the Advisory Committee on September 2 to examine sectoral challenges, but concerns remain that rationalizing export policies could inadvertently extend duties to low-grade ore. Goa’s mine owners stress that avoiding such a tax is crucial to safeguard livelihoods, sustain mining operations, and maintain fair trade practices in a sector still finding its footing under the auction regime.

Analysts note that India is fully self-sufficient in iron ore, with no shortage to meet steel production goals. In this context, penalizing Goan low-grade ore through export duties could create more harm than national benefit. By keeping the policy predictable and supportive, experts argue, the government can ensure that Goa’s mining sector continues to contribute to local economies, employment, and the broader industrial supply chain.